Reynolds Consumer Products Inc.

Greetings. Welcome to Reynolds Consumer Products, Inc. First Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jill Koval, Director of Investor Relations. Thank you, Jill. You may begin.

Thank you, Operator, and good morning, everyone. Thank you for joining us for Reynolds Consumer Products' first quarter earnings conference call. Today's call is being webcast, and a replay will be available on the Investor Relations section of our corporate site at ReynoldsConsumerProducts.com. Our earnings press release and investor presentation are also available. Joining me on the call today are Scott Huckins, our President and Chief Executive Officer, and Nathan Lowe, our Chief Financial Officer. Following their prepared remarks, we will open the call for a brief question and answer session. Before we begin, I would like to remind you that this morning's discussion will include forward-looking statements which are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those described today. Please refer to the risk factors section of our SEC filings for more information. The company does not intend to update or alter these forward-looking statements to reflect events or circumstances arising after the call. In addition, we will reference certain non-GAAP or adjusted financial measures during today's call. Reconciliations of these GAAP to non-GAAP financial measures are available in our earnings press release, investor presentation deck, and form 10Q, which can be found on the investor relations section of our website. With that, I'd like to turn the call over to Scott.

Thank you, Jill, and good morning, everyone. Thanks for joining us on the call this morning. Our strong first quarter results reflect our team's consistent execution across the entire organization and demonstrate not only the resilience of our business, but also our ability to carry the momentum we built in 2025 into 2026. I am very proud of our team for being able to execute at this level despite the heightened macroeconomic uncertainty we are all operating with. With 7% revenue growth, we outperformed our categories by two points and gained share across the majority of our portfolio. We delivered profitability improvement across three of our four business units driven by a combination of strong top line growth, including contribution from our enhanced revenue growth management capabilities, and strong operational efficiency gains. Highlights from the quarter include service levels remain strong, with case fill continuing in the high 90% range, enabling us to support our retail partners and capture demand across our portfolio. This level of operational consistency continues to be an important competitive advantage for us, particularly in a very volatile supply chain environment. We are outperforming all of our key categories and deliver double-digit growth in e-commerce, driven by strong omni-channel execution that is incremental and accretive for our retail partners. Our scale, service levels, and retail partnerships position us well to win as consumers increasingly shop seamlessly across physical stores and digital channels. The private label bid losses we discussed in February impacted our Q1 results as expected, representing roughly a three-point headwind in the first quarter. That impact, however, was more than offset with strength in other areas. As a reminder, we have seen some retailers adopt a dual sourcing strategy for risk management purposes this year. While this has created some near-term headwind for us, we remain confident that this will be more than offset by incremental opportunities over time. Our commercial teams did an excellent job navigating heightened levels of promotion and aggressive pricing strategies in certain categories and delivered strong share performance in spite of this. And we made strong progress during our spring resets with net distribution wins across key categories positioning us well for the rest of the year. Beginning January 1, we realigned our operating segments in order to increase operational and commercial efficiencies, sharpen our focus on innovation, and create a structure better positioned to support expansion into adjacent categories. We consolidated our waste bag business into a new hefty waste and cleanup segment and consolidated the food bag business into a new hefty storage and organization segment. Again, this is designed to provide clearer end-to-end ownership across R&D, innovation, commercialization, operations, and supply chain. This realignment is not about taking costs out of the business, but rather driving better outcomes by providing increased focus for existing resources. And we are already seeing early benefits as we begin to unlock these more streamlined businesses. At the same time, we renamed our two remaining business segments to reflect their broader category scope and future growth opportunities. Reynolds Cooking and Baking is now Reynolds Cooking and Kitchen Essentials, and Hefty Tableware has been renamed Hefty Home and Tableware. These new segment names better position us to meet consumer needs across an expanded total addressable market. In our Reynolds Cooking and Kitchen Essentials business, we continue to gain share in both parchment and foil, with parchment volumes outperforming the category by 10 points and foil volumes outperforming the category by 4 points. The foil category remains resilient, with net elasticity below 1, reflecting that consumers are largely absorbing price increases rather than exiting the category. As gas prices rise, we see some early evidence of consumers cutting back on eating away from home one of the first discretionary categories to be impacted. This should translate into some level of increased at-home cooking and a potential demand boost for our business. Importantly, FOIL is uniquely versatile across a full range of usage occasions from preparation, cooking, grilling, storage, portability, and cleanup, which ultimately reinforces the strength of the Reynolds brand among heavy users who rely on us across multiple occasions. Innovation continues to be a key growth driver for our business, highlighted by the launch of our Reynolds Countertop Prep Paper during the first quarter. This innovation extends the brand into higher frequency use occasions, including meal preparation and even crafting occasions, solving a basic consumer problem of cleanup time. Consumers with kids say the number one reason for not cooking or crafting with their kids its cleanup time and effort. Reynolds countertop prep paper has already earned more than 1 billion impressions from our early marketing launch. We also expanded our Reynolds foil portfolio with the introduction of a new hearts embossed fun foil, reinforcing brand engagement and relevance through design-led innovation. Finally, we were pleased to see Reynolds parchment bags named a 2026 product of the year. the largest consumer-voted award for product innovation determined through a national survey of 40,000 American shoppers, further validating our ability to deliver consumer convenience and value. In hefty waste and cleanup, we are pleased with our performance during the quarter, and the results were in line with our expectations. While top-line and bottom-line results were flat, it is important to view that in the context of intense promotional and price actions taken by competitors, including private label, across the category. Despite this, Hefty Waste Bags delivered dollar share growth and still delivered positive sales volume at retail, reinforcing our confidence that we are executing the right playbook by maintaining the price architecture of our performance brand. Our brand and performance remain strong, reflecting the durability of the Hefty brand equity. Capturing consumers' desire for bringing scent and color alternatives into their homes for a more individualized experience, our first quarter waste bag innovations included exclusive retailer scents, such as a new peach scented offering, along with a national expansion of our Hefty Fabuloso color series. What value means to different consumers is evolving as always, and we have expanded our Hefty Essentials offering with a high-quality, no-frills option designed for consumers that prioritize affordability. In our hefty storage and organization business, we again gained share despite a highly promotional environment with revenue and volume growth while overcoming last year's private-label losses. This momentum was broad-based as we saw strength in both our hefty branded and store-brand food bag offerings. underscoring the benefits of our dual focus on brand leadership and retail partnerships. PESTI food bag volumes outperformed the category by more than 10 points in both press to close and our more premium slider offering through increased distribution and consumer acceptance. We were able to offset the impact of private label bid losses with commercial wins and strong retail performance across the balance of our food bag business. Our storage team continues to drive growth through a strong combination of product strength, quality, and consumer value, despite the increased competitive pressures. In Hefty Home and Tableware, we delivered modest revenue growth and meaningful profit improvement. These strong results reflected continued operational and supply chain efficiencies and further deployment of our developing revenue growth management capabilities. We saw meaningful momentum in hefty party cups with 15 points of volume growth driven by expanded points of distribution, a broader product offering, and strong supply chain execution that kept our product on shelf while some competitors faced challenges. Foam, as expected, was a headwind in the quarter. Foam headwinds of eight points masked five points of volume growth in the balance of the business. Marketing initiatives like our hefty StrongChoice campaign reinforced product strength, brand relevance, and value as we carefully balanced pricing and volume to protect profitability. Turning to the broader environment, volatility in the geopolitical landscape continues to weigh on consumer confidence and is contributing to higher household costs, particularly through higher gas and utility prices. As a result, increased gas prices are expected to reduce U.S. household spending power by approximately $165 billion annually. Consumers remain cautious against this backdrop and are adapting their shopping behavior by placing increased value on reliability, functionality, and trusted brands, dynamics that continue to support our essential high-repeat use portfolio. While it is still early to fully assess the impact of current geopolitical developments, we have built significant supply chain resiliency over the last year and feel well prepared to manage known risks. We have also built a leaner, more agile organization that allows us to respond quickly to these events as conditions evolve. As a reminder, geographically, our largely domestic presence allows our business to remain resilient providing some insulation despite rising costs from global disruptions. We feel confident in the continuity of our supply, given longstanding supplier relationships, interactively managing raw material inflation, including resin and aluminum, through pricing actions, which we are navigating in the context of an already pressured consumer. What remains to be seen is the evolution of the consumer and the more nuanced elasticity dynamics across our categories. Despite the current macro uncertainty and cautious consumer outlook, we believe we are well positioned to stay within our existing full year 2026 earnings guidance range with robust market momentum, ongoing efficiency gains, and strong pricing power compensating for the incremental cost pressure we expect to face. The first quarter result was indicative of the underlying performance and improvements in our business. Carrying that momentum into an inflationary period gives us additional confidence in navigating the challenges in front of us. Looking ahead, our strategic priorities remain unchanged, and we will continue to focus on volume growth, operational excellence, and discipline investing. While the consumer outlook has softened since early February and macro volatility has elevated further, we remain confident in our team, our strategy, and our ability to navigate near-term uncertainty while creating long-term value for our shareholders. I will now turn the call over to Nathan to cover the financials in more detail. Nathan?